HMO Finance in Nottingham
CoreFi arranges HMO finance, purchase, conversion and refinance funding for houses in multiple occupation, for Nottingham landlords operating through limited companies. We match your case to lenders with HMO appetite in the East Midlands. Rates, loan-to-value and terms are indicative and depend on the property, planning and licensing, and lender appetite.
Nottingham is one of the most established HMO markets in the country, with two large universities feeding the student belt across Lenton, Dunkirk and Radford and a strong young professional shared-housing market beyond it. It is also one of the most regulated: the city has had a citywide Article 4 direction for years, so converting a family house into even a small HMO needs planning permission everywhere in the city, and licensing schemes sit on top. That combination shapes the finance: lenders want the planning and licensing position nailed down before they will underwrite a purchase, a conversion or a refinance, and existing lawful HMOs carry a premium precisely because new consents are hard to win.
CoreFi is a commercial finance broker, not a lender. We arrange unregulated commercial finance for businesses, principally limited companies, which is how most Nottingham HMO portfolios are now structured. We do not lend and we do not decide outcomes. Whether finance is offered, and on what terms, depends on the property, its planning and licensing status, your covenant and each lender's appetite at the time. Any figure on this page is indicative and for illustration only.
- 1
Tell us about the property and its status
Share the property, whether it is an existing lawful HMO or a proposed conversion, the planning and licensing position, room-by-room rents and your plan, purchase, conversion or refinance.
- 2
We match you to lenders
CoreFi identifies lenders on our whole-of-market panel with genuine HMO appetite in the East Midlands, matched to your property size, letting model and structure.
- 3
Review indicative terms and proceed
Interested lenders come back with indicative terms. Rates, leverage and valuation basis are confirmed through valuation and underwriting; you then deal with the chosen lender to completion.
What HMO finance covers in Nottingham
Three cases dominate. Buying an existing, lawful HMO: term facilities for limited companies secured on the property, with the lender assessing the established use, the licence and the rental income. Converting a house to an HMO: because of the citywide Article 4 direction this needs planning permission first, and the funding is usually a refurbishment or bridging facility through the works followed by a refinance onto an HMO term product once the licence is in place. Refinancing an existing HMO or small portfolio: releasing equity for the next purchase or moving off a dated rate. In each case the lawful-use question comes before the money question, which is exactly how lenders read it too.
Article 4, licensing and why lenders care
Nottingham's Article 4 direction removed the permitted development right to change a dwelling into a small HMO across the whole city, so planning consent is required for any new conversion. Licensing applies as well: mandatory licensing for larger HMOs and the council's additional licensing covering much of the rest of the market. Lenders care because both feed directly into value and exit. An HMO without the right planning status can be unenforceable as an HMO, and a valuation on the higher HMO basis collapses back toward single-dwelling value if the use is not lawful. Expect a lender to ask for the planning position, the licence or the application, and evidence the layout meets the council's standards.
How CoreFi works and what we are
CoreFi is a trading name of JG Core Ltd. We are a commercial finance broker, not a lender. Broking unregulated commercial finance to limited companies does not require FCA authorisation, and we do not hold ourselves out as FCA authorised or regulated. Our role is to understand the property, its planning and licensing status and your plan, package the case clearly and introduce it to lenders on our whole-of-market panel whose HMO criteria fit. You deal directly with the lender on the loan itself. We cannot promise an approval or a specific rate. What we can do is put a Nottingham HMO case to lenders who understand Article 4 cities rather than lenders who treat every HMO as a standard buy-to-let.
What lenders look at on an HMO case
The property and its lawful use first: planning status, licence, room sizes and amenity standards, and the letting model, student lets around Lenton behave differently from professional shares in Sherwood or Carrington. Then the income: lenders stress the rent against interest cover, usually on the aggregate room rents with an allowance for voids. Valuation basis matters: smaller HMOs are often valued as houses, while larger, genuinely commercial HMOs may attract an investment valuation; which basis applies is the valuer's call and it changes the leverage materially. Finally the borrower: limited company structure, experience with HMO management and a credible plan. All figures before formal assessment are indicative only.
Frequently asked questions
Do I need planning permission for an HMO in Nottingham?
For a new conversion, yes. Nottingham has a citywide Article 4 direction, so changing a dwelling to a small HMO requires planning permission anywhere in the city, and larger HMOs need permission in their own right. Buying an existing HMO with established lawful use is different, and evidencing that status is part of the finance case.
Can I get HMO finance through a limited company?
Yes, and it is how most Nottingham HMO borrowing is now structured. We arrange unregulated commercial finance for limited companies as standard. Lenders will typically want personal guarantees from directors, and the company's structure and track record form part of the assessment.
How are Nottingham HMOs valued for lending?
Smaller HMOs are usually valued as houses, on bricks-and-mortar value. Larger or genuinely commercial HMOs may attract an investment valuation based on income. The basis is the valuer's decision on the specific property, and it materially affects the loan available, so we flag the question early rather than let it surprise you.
Can I fund a house-to-HMO conversion?
Yes, typically with bridging or refurbishment finance through the works and a refinance onto an HMO term facility once the planning permission and licence are in place. Lenders will want the planning consent before relying on HMO income in the exit, which in an Article 4 city is the critical path.
Can CoreFi guarantee I will be approved?
No. We are a broker and we do not lend or decide outcomes. Whether finance is offered, and on what terms, depends on the property, its planning and licensing status, the income and each lender's appetite at the time. We help present the case well, but the decision sits with the lender.
Is CoreFi FCA authorised?
CoreFi arranges commercial finance for businesses, principally limited companies. Broking unregulated commercial finance to limited companies does not require FCA authorisation, and we do not hold ourselves out as FCA authorised or regulated. Regulated lending, including lending to individuals on their own home, is outside what we arrange.
Get matched with lenders for your Nottingham business
Tell us what your business needs and we will match you with lenders whose criteria fit. No obligation, no cost to start the conversation, and a straight answer about what is realistic for your situation.
Get matched with lenders